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corporate profits

Expert replies
by sumanr84 » Wed Jun 30, 2010 6:07 am
Economist: Drastically cutting payroll costs by reducing employees will bolster corporate profits and the national economy. In such a restructuring, the remaining employes must be organized to work more efficiently, which includes increasing their amount of overtime work, rather than hiring new underutilized personnel. The resulting increase in national productivity will then allow those who were made jobless to find work in new positions that will have sprung up with the healthier economy.

Which of the following, if true, casts most doubt on the economist's conclusion above?

a. If employees are made to work longer hours, the additional hours worked will not be as productive as the regular hours these same employees have already worked.
b. Most corporations are already at the minimum numbers of employees needed to effectively maintain their operations.
c. Some economists predict that the national economy will substantially improve in the next two years even without drastic reductions in payroll costs.
d. If corporations reduce the number of employees, the average number of employees per company will decrease.
e. Many of the new positions in a restructured economy would be lower paying than those lost during the restructuring.
[spoiler]Source : kaplan cat2, OA later[/spoiler]
I got this wrong today..easy peesy..damn.. :(
I am on a break !!
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Source: — Critical Reasoning |

by albatross86 » Wed Jun 30, 2010 6:40 am
A. The overtime hours are not as productive. This doesn't break the argument since there are other ways that efficiency will increase - overtime is only one example.

B. Exactly. If they are already at the minimum, reducing it further will affect operations negatively and could result in reduced profits.

C. It will improve anyway, but perhaps even more with this proposal.

D. Irrelevant. This is expected and doesn't attack the conclusion.

E. New positions - lower paying. So what, we are only concerned with the overall impact on the economy, which may still be positive.

Pick B.
~Abhay

Believe those who are seeking the truth. Doubt those who find it. -- Andre Gide
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by beat_gmat_09 » Wed Jun 30, 2010 6:41 am
sumanr84 wrote:Economist: Drastically cutting payroll costs by reducing employees will bolster corporate profits and the national economy. In such a restructuring, the remaining employes must be organized to work more efficiently, which includes increasing their amount of overtime work, rather than hiring new underutilized personnel. The resulting increase in national productivity will then allow those who were made jobless to find work in new positions that will have sprung up with the healthier economy.

Which of the following, if true, casts most doubt on the economist's conclusion above?

a. If employees are made to work longer hours, the additional hours worked will not be as productive as the regular hours these same employees have already worked.
b. Most corporations are already at the minimum numbers of employees needed to effectively maintain their operations.
c. Some economists predict that the national economy will substantially improve in the next two years even without drastic reductions in payroll costs.
d. If corporations reduce the number of employees, the average number of employees per company will decrease.
e. Many of the new positions in a restructured economy would be lower paying than those lost during the restructuring.
[spoiler]Source : kaplan cat2, OA later[/spoiler]
I got this wrong today..easy peesy..damn.. :(
Choice B.
Conclusion - Bolster Profits by cutting costs by reducing employees
Point to attack - Drastically cutting payroll costs by reducing employees will bolster corporate profits
A - Productivity does not weaken
C - not relevant
D - This point only mentions reducing number of employees and average no of employees, no effect of profits, moreover this point does nothing to weaken the arg
E - This strengthens and does not weaken.
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by sumanr84 » Wed Jun 30, 2010 9:05 am
OA : B
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by reply2spg » Fri Jul 23, 2010 6:16 pm
Damn it is easy but took me almost 3 minute....if employees are already at minimum level then what is the need of employing new employees?

B is correct
sumanr84 wrote:Economist: Drastically cutting payroll costs by reducing employees will bolster corporate profits and the national economy. In such a restructuring, the remaining employes must be organized to work more efficiently, which includes increasing their amount of overtime work, rather than hiring new underutilized personnel. The resulting increase in national productivity will then allow those who were made jobless to find work in new positions that will have sprung up with the healthier economy.

Which of the following, if true, casts most doubt on the economist's conclusion above?

a. If employees are made to work longer hours, the additional hours worked will not be as productive as the regular hours these same employees have already worked.
b. Most corporations are already at the minimum numbers of employees needed to effectively maintain their operations.
c. Some economists predict that the national economy will substantially improve in the next two years even without drastic reductions in payroll costs.
d. If corporations reduce the number of employees, the average number of employees per company will decrease.
e. Many of the new positions in a restructured economy would be lower paying than those lost during the restructuring.
[spoiler]Source : kaplan cat2, OA later[/spoiler]
I got this wrong today..easy peesy..damn.. :(
Sudhanshu
(have lot of things to learn from all of you)
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by patanjali.purpose » Wed Nov 21, 2012 10:41 pm
Economist: Drastically cutting payroll costs by reducing employees will bolster corporate profits and the national economy. In such a restructuring, the remaining employees must be organized to work more efficiently, which includes increasing their amount of overtime work, rather than hiring new underutilized personnel. The resulting increase in national productivity will then allow those who were made jobless to find work in new positions that will have sprung up with the healthier economy.

Which of the following, if true, casts most doubt on the economist's conclusion above?

a. If employees are made to work longer hours, the additional hours worked will not be as productive as the regular hours these same employees have already worked.
Can anyone explain why is A INCORRECT?

Since the argument says "employees must be organized to work more efficiently, which includes increasing their amount of overtime". It means INCREASING AMOUNT OF OVERTIME (one of the ways) WILL LEAD TO HIGHER PRODUCTIVITY. But, if during OVERTIME employees are NOT AS PRODUCTIVE AS regular hours, then how can we say that RESTRUCTURING WILL lead to increase in national productivity. Pls help
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